Nvidia’s Record Quarter and Telecom Push Can’t Hide the China Question Mark
25.05.2026 - 11:52:19 | boerse-global.de
Jensen Huang spent the past week shuttling between a blockbuster earnings call and a Taipei trade show, but the one topic he couldn’t put to rest is the world’s second-largest economy. Even as Nvidia posted numbers that smashed expectations and laid out ambitious plans for a $200 billion CPU market, the company’s access to China remains effectively frozen. Meanwhile, the chip giant offered investors a fresh growth narrative in the form of 6G and AI-powered telecom infrastructure, raising the question of whether a second engine can offset the gap left by Beijing.
The headline figures from the first fiscal quarter of 2027 are hard to ignore. Revenue surged 85% year-on-year to $81.6 billion, with the data centre segment alone contributing $75.2 billion — a 92% jump. Adjusted earnings per share more than doubled to $1.98, topping analyst forecasts. The edge computing business, which now includes AI-RAN base stations under a separate reporting line, added $6.4 billion, up 29% from a year earlier. Huang also pointed to three consecutive quarters of accelerating growth and set a target of $20 billion in CPU revenue for the current year, a volume that would make Nvidia the world’s biggest supplier of central processors.
The stock, however, has been cooling after its recent run. Shares traded around €189, roughly 6–8% below the 52-week high of €201, and declined about 3% over the past seven days. The relative strength index sits at 39.5, a neutral-to-slightly-oversold reading that suggests the selloff may be overdone. Year-to-date the shares have added 17%, while the 12-month gain stands at more than 57%, and the price remains above all key moving averages, keeping the intermediate uptrend intact.
Should investors sell immediately? Or is it worth buying Nvidia?
Yet the biggest strategic risk for Nvidia is not price action but the China impasse. Huang acknowledged in Taipei that while a formal export channel for H200 chips has existed since December 2025 and covers ten Chinese companies including Alibaba, Tencent and ByteDance, not a single unit has been delivered. Beijing has told domestic firms to hold off purchases and turn to Huawei instead. Nvidia’s market share in China’s AI chip segment has plunged from roughly 95% to virtually zero, according to Huang himself. Huawei’s Ascend 950PR chip entered mass production in March, and the company expects $12 billion in AI chip revenue by 2026, a 60% jump. Morgan Stanley forecasts that China’s overall AI chip market will reach $67 billion by 2030, with local suppliers capturing the lion’s share unless the geopolitical logjam breaks.
To diversify its growth base, Nvidia is placing a strong bet on telecom. At the IEEE International Conference on Communications in Glasgow, the company showcased its AI-RAN platform as the foundation for 6G networks. Ronnie Vasishta, senior vice president for telecom, delivered a keynote on May 24 outlining how AI can support the full lifecycle of 6G systems, and additional sessions on digital twins and AI-native networks are scheduled through May 28. The effort goes beyond conference rhetoric: AI-RAN now appears as a specific component of Nvidia’s edge computing offering in its official quarterly filings, and the company has announced partnerships with T-Mobile and Nokia to integrate physical AI applications into AI-RAN-ready infrastructure.
With Vera-Rubin platform production ramping up in the second half of the year and Huang scheduled to meet TSMC executives, Nvidia’s near-term execution looks solid. The real test for investors will come in the second-quarter results, which will show whether the edge computing segment can maintain its 29% growth trajectory and whether the telecom strategy begins to leave measurable footprints in the revenue line. If it does, Nvidia may finally have a credible second growth story to tell alongside its hyperscaler-driven data centre business. If not, the China freeze will remain a persistent and uncomfortable weight on the stock.
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